Prudent Investors Network Inc

ITEM 5 - FEES AND COMPENSATION

Investment Management Fees and Compensation

Prudent Investors charges a fee as compensation for providing investment management
services on your account. These services include advisory and consulting services, trade entry,
investment supervision, and other account maintenance activities. Our recommended
custodian may charge custodial fees, transaction fees, redemption fees, retirement plan and
administrative fees or commissions. See Additional Fees and Expenses below for additional
details.

          Prudent Investors Network, Inc. – 22932 El Toro Road, Lake Forest, CA 92630 - FORM ADV 2A Brochure

The fees for portfolio management are based on an annual percentage of assets under
management and are applied to the account asset value on a pro-rata basis and billed monthly
in advance. The initial fee will be on the market value the date the account was funded,
prorated for the number of days in the month that your account is under management.
Thereafter, the monthly fee will be calculated on the close of the last business day of the prior
calendar month. The market value will be determined as reported by the Custodian. Unless
otherwise agreed upon and stated in the Management Agreement, fees are assessed on all
assets under management, including securities, cash and cash equivalents, any margin debt
balances, and money market balances. When applicable and noted in the Management
Agreement, legacy positions may be excluded from the fee calculation. Our maximum annual
fee for managed account is 1.4% and the specific advisory fees are set forth in your
management agreement.

The independent qualified custodian holding your funds and securities will debit your account
directly for the advisory fee and pay that fee to us. You will provide written authorization
permitting the fees to be paid directly from your account held by the qualified custodian.
Further, the qualified custodian agrees to deliver an account statement at least quarterly
directly to you indicating all the amounts deducted from the account including our advisory
fees. If there is activity in a month, a monthly statement will be sent. At our discretion Prudent
Investors will allow advisory fees to be paid by check as indicated in the Management
Agreement. You are encouraged to review your account statements for accuracy.

Either Prudent Investors or the client may terminate the management agreement at any time
by providing thirty (30) days’ prior written notice. Termination becomes effective thirty (30)
days after receipt of written notice (“Termination Effective Date”). Fees will continue to accrue
through the Termination Effective Date and no fees will be charged for any billing period that
begins after that date. No pro-rata refunds will be provided for the final month of service
through the end of the 30-day notice period.

 Upon termination, you are responsible for monitoring the securities in your account, and we
will have no further obligation to act or advise with respect to those assets. In the event of
client’s death or disability, Prudent Investors will continue management of the account until we
are notified of client’s death or disability and given alternative instructions by an authorized
party.

Expert Witness

For expert witness services, we charge a fee of $750 per hour. These services may include case
analysis, forensic investment reviews, preparation of reports, deposition testimony, and court
appearances. A retainer may be required before commencement of services, and all fees are
disclosed in an engagement agreement prior to providing any expert witness services. Clients
are responsible for any additional expenses incurred, such as travel, lodging, and other
reasonable costs related to the engagement. These fees are separate from and in addition to
any investment advisory fees that may be charged for portfolio management, financial

         Prudent Investors Network, Inc. – 22932 El Toro Road, Lake Forest, CA 92630 - FORM ADV 2A Brochure

planning, or consulting services. Expert witness fees are non-contingent, meaning they are not
based on the outcome of any legal proceedings.

Financial Planning and Consulting Fees

We provide consulting services for clients who need advice on a limited scope of work. We will
negotiate consulting fees with you. Fees are billed at $425 an hour or a fixed negotiated fee for
Consulting Services. An estimate for total hours will be determined before the work begins and
the estimated fee may be due upon signing the advisory agreement. If the work expands
beyond what was initially anticipated, Prudent Investors will consult with the client before
proceeding. An additional retainer may be requested in such cases. The balance of the fee
(based on actual hours) is due upon presentation of the plan to the client. An agreement may
be canceled at any time by either party for any reason upon receipt of written notice. Upon
termination, any prepaid, unearned fees will be refunded and any earned, unpaid fees will be
due and payable. These fees may be negotiable.

Additional Fees and Expenses:

In addition to the advisory fees paid to Prudent Investors clients also incur certain charges
imposed by other third parties, such as broker-dealers, custodians, trust companies, banks and
other financial institutions (collectively “Financial Institutions”). These additional charges
include securities, transaction fees, custodial fees, fees charged by the Independent Managers,
charges imposed directly by a mutual fund or ETF in a client’s account, as disclosed in the fund’s
prospectus (e.g., fund management fees and other fund expenses), deferred sales charges, odd-
lot differentials, transfer taxes, wire transfer and electronic fund fees, and other fees and taxes
on brokerage accounts and securities transactions. Our brokerage practices are described at
length in Item 12, below. Neither Prudent Investors nor its supervised persons accept
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ITEM 7 - TYPES OF CLIENTS

We provide investment advice to public guardians, public and private professional fiduciaries,
family fiduciaries, conservators, individuals, trustees of family trusts and retirement plans,
pooled investors and businesses. Our minimum initial account value is $250,000; however, we
may accept accounts for less than the minimum at our sole discretion.

         Prudent Investors Network, Inc. – 22932 El Toro Road, Lake Forest, CA 92630 - FORM ADV 2A Brochure